I've been involved in a few acquisitions and, generally, the purchase agreements state that the current mangement will continue business as usual - if that involves signing contracts, acquiring or selling assets, etc. Then after this general provision, there will be certain trigger levels that would require consultation/approval fromm the buyer. Even then, though, if the proposed transaction in excess of the trigger levels is seen to be beneficial to the business the approval will be granted. What they're looking to avoid is current management selling an asset worth $10 million to a brother-in-law for $1 million, or buying an asset worth $1 million and paying $10 million. But if you have an asset you paid $10 million for that is now worth only $1 million (say a pallet full of first generation Ipods or Jacque Jones's contract) selling that for $1 million generally wouldn't be a problem. On the other hand, if the buyer thinks current management doesn't have a clue and making any decisions with long term consequences is going to reduce the value of the business, then the answer will generally be no.